Prices for wheat on the global markets continue to decrease, the export quota has been approved, and grain exports in Kazakhstan have increased by 35%.

As of the reporting week from 22.11.24 to 29.11.24, prices for wheat on world markets continued to decline. Here are the price changes for various types of wheat:

• Price for Soft Red Winter Wheat on the Chicago Board of Trade (CBOT, ZW) decreased to 532.25 cents/bushel (-2.20%);
• Hard Red Winter Wheat on the Kansas City Board of Trade (KCBT, KE) fell to 520.75 cents/bushel (-6.04%);
• Hard Red Spring Wheat on the Minneapolis Grain Exchange (MGE, MWE) dropped to 572.50 cents/bushel (-2.30%);

Contract for corn on the Chicago Board of Trade (CBOT, ZC) decreased to 423.00 cents/bushel (-0.59%). The price for rice in Chicago (CBOT, ZR) rose to $15.22 per hundredweight (+0.46%).

Indicative prices for Russian products (FOB Black Sea):

• wheat increased to $228.70 per ton (+2.79%);
• barley rose to $186.70 per ton (+0.70%);
• corn decreased to $217.70 per ton (-1.31%);

Russian wheat price index, CPT Novorossiysk, increased to 18461 rub./ton (+2.41%).

Purchase prices for 4th class wheat with 12.5% protein content at port elevators of the Black and Azov Seas for the reporting period:

• Azov – 15200 (0) rub./ton
• Novorossiysk – 19150 (+800) rub./ton
• Rostov-on-Don – 15200 (0) rub./ton
• Taganrog – 15200 (0) rub./ton
• Taman – 17900 (+550) rub./ton

Grain market news:

• The Customs Subcommittee approved a quota for wheat exports from Russia amounting to 11 million tons. This quota will be effective from February 15 to June 30, 2025. The quota includes only wheat and meslin, with a quota of 0 tons for barley, rye, and corn. Within the quota, there will be a floating rate of export duty (duty reducer), and the out-of-quota rate will be 50%, but not less than €100 per ton.

• The Customs Subcommittee also supported a temporary ban on the export of rice and rice groats from January 1 to June 30, 2025. This is an extension of the current ban in place until December 31, 2024. This decision was proposed by the Ministry of Agriculture.

• According to Rosstat, as of November 1, 2024, Russia harvested 124.3 million tons of grain in its original weight (which is 11.9% less than the previous year). Grain harvesting was completed on 96.1% of the areas, and grain corn harvesting was completed on 77.6% of the areas. Winter crops as of November 1, 2024, were sown on 9.9 million hectares, which is 10% less than the previous year.

• The official estimate of the export potential for the current season is 55-60 million tons of grain. The total grain procurement will amount to 130 million tons, including 83 million tons of wheat.

• President Vladimir Putin has allowed the purchase of 100% of the shares of the Russian Elevator Company ("RusElevator"), which is owned by the French company Louis Dreyfus. "RusElevator" controls one of the largest elevator networks in Russia, uniting elevators in the Stavropol Krai, Voronezh, Rostov, and Volgograd regions.

• It is projected that in 2024, flour production in Russia will increase by 4.5%, according to the Russian Union of Flour and Groats Enterprises. This year, Russia will produce 10.3 million tons of flour, compared to 9.853 million tons the previous year. This is primarily related to wheat flour.

• Starting from December 4, 2024, customs duties on grain crops will increase.

Kazakhstan
• In November 2024, grain exports from Kazakhstan increased by 35%, according to KTG. Significant growth is noted in supplies to Central Asian countries (+27%), Afghanistan (+62%), and Iran, where the volume of shipments exceeds last year's level tenfold.

• Kazakh deputies requested an additional allocation of 75 billion tenge for the purchase of 1 million tons of grain. The Grain Corporation lacks the allocated 10 billion tenge for direct grain purchases from farmers to stabilize the situation on Kazakhstan's grain market.

Kyrgyzstan
• Grain harvesting in Kyrgyzstan was completed on 660.5 thousand hectares, which is 99.6% of the total sown area. Harvesting of wheat (722.1 thousand tons), barley (638.3 thousand tons), and corn (754.3 thousand tons) is fully completed.

Ukraine
• The harvesting campaign in Ukraine is nearing its end.